Now, I am not talking about laddering. I have the 10,000.00 now and will not need to tap into it for a long time. I would like to know if the compounded amount is greater for one 10,000.00 CD vs. 10 1,000.00 CD's.
2006-07-09 10:31:05 · 11 answers · asked by cleanfanatic 2 in Business & Finance ➔ Investing
Your interest rate will be higher if it is all in one account, rather than separate accounts but.....
You say you won't need it for a long time, so why would you put it into CDs instead of a stock based mutual fund that is likely, over the long run, to yield far better returns?
Oh..and if you're still interested in safety of principal over potential returns, consider getting a brokerage money market account . Every brokerage firm and mutual fund company will have one. They usually pay at least CD rates and have no term requirements or penalties. Plus, if it fits your needs, you can get a tax free money market fund.
2006-07-09 13:20:53 · answer #1 · answered by Lori A 6 · 1⤊ 0⤋
Wrong.
No matter how many you buy, the interest rate will be the same on all of them. Best to keep them in a bundle to better manage them, unless you want to Cash them in at different times, which is what I would suggest.
Take a $1000 CD out every month for the next ten months, then cash them out as they come due.
Best of luck to you!
2006-07-09 10:40:35 · answer #2 · answered by Anonymous · 0⤊ 0⤋
My wife the former banker says the rate is better on the bigger note, but if you wnat the fexibility of being able to take one at a time, the 10 for 1000 would be better
2006-07-09 10:36:26 · answer #3 · answered by Jester 2 · 0⤊ 0⤋
Watch for rates based on minimum investment. If the minimum is 1000 then get ten of them...
If you have to cash one or two out you will probably lose 6 months interest and you would rather lose that on 2-3k rather than on 10k.
2006-07-09 11:58:06 · answer #4 · answered by Christopher Swing 2 · 0⤊ 0⤋
Get whatever has the highest APR.
All CDs accrue interest daily at a rate of y/360 -- where 'y' is the nominal yield.
2006-07-09 11:02:41 · answer #5 · answered by Ranto 7 · 0⤊ 0⤋
Get one for 10,000.00 because the interest will be higher per a dollar and since their will be more money you will get more interest on the amount
2006-07-09 10:35:17 · answer #6 · answered by yo 2 · 0⤊ 0⤋
Depending on how dividends are compounded the large amount will give you the better return.
2006-07-09 12:12:43 · answer #7 · answered by John H 4 · 0⤊ 0⤋
you might be better off investing in a money market savings account 5.55% this way when intrest rates go up (wich we know they will) so will the rate on your investment.
2006-07-09 10:41:11 · answer #8 · answered by osu_otter 2 · 0⤊ 0⤋
The income is going to be same ,if the princaple changes then the income will change.
2006-07-09 10:38:06 · answer #9 · answered by howaboutit99@sbcglobal.net 2 · 0⤊ 0⤋
I would get one for $10K. The interest payout would be more as a collective.
2006-07-09 10:36:28 · answer #10 · answered by thehashbrown25 3 · 0⤊ 0⤋